Quick overview

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Taiwan Manufacturing Semiconductor Co. Sales in January increased at the fastest rate in months, indicating that global AI spending is continuing despite ongoing worries about an industry bubble.

NVIDIA Corp.’s contract chipmaker. revealed that January revenue increased by 37% to NT$401.3 billion ($12.7 billion), exceeding the 30% revenue growth that TSMC anticipates for the entire year. However, the Lunar New Year holidays, which fell in January in 2025, might have impacted the comparison with the previous year.

Additionally, TSMC, which manufactures chips for Apple Inc., has benefited greatly from investment in artificial intelligence because of its production of cutting-edge AI accelerators.

TSMC has allocated up to $56 billion in capital expenditures this year, a quarter more than in 2025, because of increased demand for data center chips in particular. Jensen Huang, the CEO of Nvidia, referred to the capital expenditure binge as a “once-in-a-generation infrastructure buildout” last week.

However, the enormous expenditures of big tech firms such as Amazon and Meta Platforms Inc. are concerning investors as well, who question whether artificial intelligence will help those who place the most bets. People who have previously suffered from boom-and-bust tech cycles are also wary of the circular nature of many data center agreements.